Thursday, June 20, 2024
Hawai'i Free Press

Current Articles | Archives

Friday, June 1, 2018
Relief for Taxpayers Affected by Volcano
By News Release @ 10:08 PM :: 4337 Views :: Hawaii County , Taxes

RELIEF FOR TAXPAYERS AFFECTED BY THE LAVA FLOW IN PUNA

News Release from Office of the Governor, May 31, 2018

HONOLULU – As a result of the eruption and lava flow in the district of Puna that caused extensive damage in Hawaii county, Governor David Y. Ige has directed the Tax Department to provide relief and assistance to the affected taxpayers.

The Department today issued a Tax Announcement describing various forms of relief that are available to taxpayers who are affected by the disaster.

I. MARK TAX RETURNS “2018 PUNA LAVA RELIEF”

“Because taxpayers may have difficulty meeting their tax obligations, the Department will consider requests by affected taxpayers for extensions to file and pay Hawaii taxes and for waivers of penalties and interest on a case-by-case basis,” said Tax Director Linda Chu Takayama. The relief provided by this section applies to all taxes that the Department administers, including general excise, transient accommodations, net income, tobacco, and liquor.

All Hawaii tax returns in which relief is requested in connection with the disaster should be clearly marked “2018 Puna Lava Relief” on the top center of the return. Do not write “2018 Puna Lava Relief” in the “DO NOT WRITE IN THIS SPACE” area in the upper right corner of any return. Taxpayers who were affected by the disaster, but whose address on file with the Department is not in Hawaii county, should also include a brief statement as to how the disaster adversely affected their ability to meet their tax obligations.

II. CASUALTY LOSSES

For purposes of Hawaii income tax law, taxpayers may claim all of the casualty loss deductions allowed by section 165 of the Internal Revenue Code of 1986, as amended. Refer to Internal Revenue Service Publication 547 for more information. Casualty losses on business property are deductible in full. The first $100 of eligible unreimbursed casualty losses on nonbusiness property are not deductible. The remaining loss is deductible to the extent it exceeds 10 percent of the taxpayer’s Hawaii adjusted gross income. The following options are available after determining the amount of losses:

1. Taxpayers may elect to claim a casualty loss deduction on their 2017 income tax returns, instead of on their 2018 income tax returns (an amended return may need to be filed if this option is chosen) because the President of the United States of America issued a federal disaster declaration on May 11, 2018;

2. Taxpayers may elect to deduct the losses on their 2018 income tax returns; or

3. If taxpayers’ casualty losses are more than income, a net operating loss may result. A net operating loss may be used to lower taxes in an earlier year, resulting in a refund for taxes already paid. If properly elected, a net operating loss may be used to lower taxes in a later year. A taxpayer does not have to be a business to claim this benefit; all taxpayers may claim this carryback or carryover net operating loss.

III. GENERAL EXCISE TAX EXEMPTION FOR INSURANCE PROCEEDS RECEIVED BECAUSE OF A NATURAL DISASTER

Pursuant to section 237-24.7(6), Hawaii Revised Statutes, amounts received under property and casualty insurance policies for damage or loss of inventory used in a trade or business located within an area declared a disaster by the governor are exempt from general excise tax. Refer to the instructions for Forms G-45 and G-49 for more information.

Tax forms and information are available on the Department’s website at tax.hawaii.gov. Additional information is available by calling the Technical Section during business hours at (808) 587-1577, or by e-mailing tax.technical.section@hawaii.gov. Residents on Hawaii Island may contact the Tax Department in Hilo at (808) 974-6396.

# # #

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

MentalIllnessPolicy.org

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii

Obookiah

OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

RailRipoff.com

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

SenatorFong.com

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii